Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ energy stocks rally on Shane Jones effect

MARKET CLOSE: NZ energy stocks rise rally on Shane Jones effect

By Suze Metherell

April 24 (BusinessDesk) – New Zealand stocks rose, energy stocks extended a rally for a second day as turmoil in the Labour Party fuelled speculation the incumbent National-led government will return for a third term. Meridian Energy, MightyRiverPower, Contact Energy and Genesis climbed.

The NZX 50 Index rose 11.041 points, or 0.2 percent, to 5153.963. Within the index, 23 stocks rose, 13 fell and 14 were unchanged. Turnover was $123 million.

The surprise exit from politics by Labour MP Shane Jones, who ran for the party’s leadership last year, to take up a Pacific economic ambassador post created for him by the National-led government, may weaken the opposition party’s election chances. The Labour and Green parties want to re-regulate New Zealand’s energy market, a policy which spooked investors and depressed interest in the partial privatisation of MRP, Meridian and Genesis over the last 13 months.

Majority state-owned Meridian climbed 1.3 percent to $1.20, a record price for the stock since its October listing. MRP rose 1.8 percent to a near nine-month high of $2.30. Contact advanced 0.7 percent to a year high of $5.73.

Outside the benchmark index, Genesis Energy, the last asset in the government’s partial-privatisation scheme to be publicly listed, rose 0.6 percent to $1.82 as $172 million worth of its shares changed hands today. It has gained 17 percent since its launch a week ago.

“The big news on our market has been the relative rally in the energy stocks,” said Robert Garden, investment advisor at Craigs Investment Partners. “You could almost put that down to dysfunction in the Labour Party with Shane Jones leaving in the last day or so. It’s probably a wee bit of another nail in the coffin for Labour.”

Auckland lines company Vector was unchanged at $2.49, as was TrustPower at $6.65. Infratil, which owns half of TrustPower, advanced 0.2 percent to $2.27.

SkyCity Entertainment Group was the day’s best performer, rising 2.5 percent to $4.13, paced by Tower, up 2.5 percent to $1.65. OceanaGold rose 1.9 percent to $2.65, and Sky Network Television advanced 1.9 percent to $6.50.

Fletcher Building, New Zealand’s largest listed company, rose 0.2 percent to $9.76. Telecom slipped 0.8 percent to $2.615 while Auckland International Airport fell 1.5 percent to $3.97.

Pacific Edge, the Dunedin-based biotech company, was the day’s worst performer on the bourse, down 5.4 percent to $1.06. Diligent Board Members Services declined 2.4 percent to $4.49 and Xero, the cloud-based accounting software firm, dropped 1.2 percent to $31.90. A2 Milk Company, the premium quality milk marketer, fell 1.2 percent to 84 cents.

Warehouse Group, New Zealand’s largest listed retailer, declined 1.5 percent to $3.35. Trade Me Group, the online auction website, climbed 0.5 percent to $3.91 and Brisbane-based jeweller Michael Hill International was unchanged at $1.32.

Outside the benchmark index, Seeka Kiwifruit Industries tumbled 12 percent to $2.63 after earlier this week announcing it had paid $5.25 million for Glassfields (NZ), the fruit ripening and import business, as it seeks growth away from the kiwifruit sector.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news